It is true that the Self Employed borrower normally hits a wall when it comes to qualifying for a mortgage when asked for their Federal tax returns. The process by which your accountant works their magic is the often the exact opposite of what the lenders want to see with regards to income. After a long exercise of averaging income in conjunction with preparing a year to date profit and loss and reviewing allowable add backs the self-employed borrower usually gets stuck not qualifying. The borrowers run businesses and earn income but they just are unable to satisfy the lender requirements for a mortgage. For this reason, we now have options that allow us to step away from income and focus strictly on cash flow. We can help you get qualified for a competitive mortgage with your business cash flow without the need or demand for Federal tax returns or the 4506 form.
For the complete Wall Street Journal Article, click here --> Self-Employed Workers Face Mortgage Hurdles or a similar article on Motley Fool - 15 Million Americans Could Face This Major Mortgage Hurdle
To learn more about our bank statement loans for self-employed borrowers click here.
George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC
Mortgage Specialists - Virginia, Maryland, Florida & Pennsylvania
Other Programs: Alt-A Investor loans-80% Full doc & 75% No Income-No Employment, FHA & VA with Lower Score Options, Fixed & Variable Jumbos-Traditional & Private Label Reverse, Self-Employed Bank Statement & Asset Dissipation Programs. Full range of Non QM Loans for expanded qualification.